Citigroup: Stablecoins May Drive the Next Growth Phase of Cryptocurrency

ChainCatcher news, according to CoinDesk, Citibank has released a report indicating that stablecoins may drive the next growth phase of cryptocurrency.

The bank's analysts compared stablecoins to the rise of money market funds in the 1980s, noting that the main driving force behind stablecoins is their role as a "store of value" in emerging markets facing inflation or institutional weakness, which could further stimulate demand for dollar assets but may also trigger policy responses to limit dollarization.